KUALA LUMPUR: PLS Plantations Bhd, which is shifting its core business into durian plantations, has proposed to place out up to 19 million new shares to former CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak at 95 sen a share.
It said on Friday the 19 million new shares represented about 5.23% and 3.61% of the issued shares under the minimum scenario of 363.20 million shares and maximum scenario of 526.05 million shares. The total cash consideration for the 19 million new shares will be RM18.05mil.
PLS said Nazir is the chairman and founding partner of Ikhlas Capital Singapore Pte Ltd, a private equity firm based in Singapore and has a presence in Malaysia, Jakarta and Manila.
PLS had also proposed to place up to 33.60 million new shares, or up to 6.39% of the issued shares to third party investors at a later date and at an issue price to be determined.
Based on the subscription price and the illustrative issue price of 95 sen per share, PLS will raise gross proceeds of up to approximately RM34.50mil (based on the minimum scenario) and RM49.97mil (maximum scenario, if the 162.85 million warrants are exercised).
PLS said under the minimum scenario raised from the placement, it will use RM15.85mil to expand its downstream activities for the durian businesses or RM28.85mil under the maximum scenario.
It also plans to use RM13mil under the minimum scenario for expansion/investment in durian plantations or RM15mil under the maximum scenario.
On Dec 18,2020, PLS’ unit Ikhlasi Bina Sdn Bhd had entered into a sale and purchase agreement with Kit Ming Sawmill Sdn Bhd to acquire 14.81 acres of freehold land in Raub, Pahang.
PLS said it is currently in non-compliance with the public shareholding spread requirement as set out of the Listing Requirements where at least 25% of its total listed shares (excluding treasury shares) are in the hands of public shareholders.
The proposed placement would allow the company to improve its public shareholding spread expeditiously and avoid the suspension
The company’s public shareholding spread would increase to 10.49% upon completion of the proposed placement to Nazir Razak and 14.38% upon full completion of the proposed placement (assuming none of the outstanding warrants is exercised).
“The proposed placement would also enable the company to onboard Nazir Razak as a strategic investor," it said and also enable it to raise up to RM34.50mil (under the minimum scenario) from the shares to be placed out to third parties.
“The proceeds raised from the proposed placement will primarily be used to set up a durian business hub and to expand its existing durian plantation businesses through the cultivation and planting of more durians at the group’s existing plantation lands and at other third parties’ land which the group has identified as suitable for durian plantation.
“These are in line with the group’s plan to grow its durian businesses, which in turn is expected to provide additional streams of revenue and income to the Group in the forthcoming financial years and to also ensure sufficient supply of fresh durian fruits for its manufacturing and trading businesses.
“The proposed placement will also enable the company to raise funds to partially repay the group’s bank borrowings which stood at approximately RM121.48mil as at Dec 31,2020, ” it said.
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